By Gerelyn Terzo, Global AgInvesting Media

Gresham House has secured a significant milestone for its global forestry ambitions. The specialist investment manager, whose specialty areas of focus include natural capital, has closed on more than €250 million in initial commitments for its Sustainable International Forestry Strategy Platform. In a coup for the firm, Gresham House has attracted anchor capital from NGS Super, marking the first time an Australian superannuation fund has entered the fray to invest in a Gresham House strategy platform, signaling an important step in the ongoing international expansion of the firm’s natural capital offering. Additionally, the U.K.’s Worcestershire Pension Fund joined the LP lineup in pursuit of greater natural capital exposure.

Forestry stands out as non-correlated to traditional asset classes, offering return drivers that are closely tied to real assets and long-term inflation rather than short-term market swings. Those traits have helped it play a steadying role in diversified portfolios through changing economic cycles. Global timber demand is expected to climb roughly 50–80 percent by 2050 from 2022 levels, while supply is forecast to rise by at most about 10% over the same period, according to UN data. That widening demand/supply gap is one reason LPs increasingly view forestry as a compelling long-term real asset exposure.

Gresham House’s Strategy Platform targets broad-based portfolio of productive, sustainably managed timberland and afforestation assets, spanning a range of ages and tree species across Australia, New Zealand, the U.K., Ireland and continental Europe. Classified as an Article 9 product under SFDR, the Strategy pursues a sustainable investment objective, further guided by the Gresham House Forestry Charter, which weaves ESG considerations into every stage of the investment process.

Gresham House CEO Tony Dalwood stated, “Reaching over €250 million in this first close with two cornerstone investors underscores both the strength of the forestry asset class and our track record managing it at scale. We’re delighted to deepen our UK LGPS relationships and welcome NGS Super as our first Australian superannuation fund investor. The Strategy Platform is designed to capture long-term opportunities associated with sustainable forestry and natural capital. We are proud to partner with forward-looking investors who recognize the role forestry plays in addressing climate change and biodiversity loss.”

Adrian Hardmann, Chair of the Pension Committee, Worcestershire Pension Fund, said, “Forestry offers diversification, inflation linkage and tangible environmental benefits. Our commitment to the Gresham House Sustainable International Forestry Strategy Platform diversifies our existing exposure and reflects our conviction in sustainable real assets and our belief in the importance of investing in natural capital for the long term.”

NGS Super Chief Investment Officer Ben Squires commented, “As a Strategy Platform with a long-term horizon, sustainable forestry aligns with our objectives to achieve stable, risk-adjusted returns while contributing to global climate and biodiversity goals.”

Investment and asset management for the new platform will be steered by Gresham House’s Sustainable Investment Policy and Forestry Charter, both of which are aligned with national and international standards for sustainable forest management. These frameworks integrate ESG considerations at every turn, from climate resilience and biodiversity to local community outcomes, and are tktk by the firm’s involvement in the International Sustainable Forestry Coalition, a global partnership promoting best practice across the sector.

With more than €4.1 billion in forestry and natural capital assets under management and a track record spanning over 40 years, Gresham House brings deep operational experience to this strategy. Its forestry approach not only aims to deliver attractive risk-adjusted returns, but also to advance carbon sequestration, habitat restoration and rural economic development, positioning the platform to tap into the growing opportunity set across natural capital markets.

Investment decisions under the new platform will be shaped by Gresham House’s Sustainable Investment Policy and its Forestry Charter, both of which are grounded in recognized standards for responsible forest management. These frameworks keep climate risk, biodiversity and community outcomes front and center, and are complemented by the firm’s role in the International Sustainable Forestry Coalition, where members seek to advance sustainable forestry practices

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